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Enhancing Small Business Participation in State DOTs and DBE Programs

This session will delve into fostering small business participation within State Departments of Transportation (DOTs) and Disadvantaged Business Enterprise (DBE) implementation. Key topics include oversight and reporting requirements, strategies for creating small business elements, and best practices for establishing race-neutral set-asides and unbundling contracts. Participants will learn how to measure success, build relationships, and ensure compliance with federal regulations. Interactive Q&A will provide further insights into best practices for small business engagement.

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Enhancing Small Business Participation in State DOTs and DBE Programs

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Presentation Transcript

  1. State DOTs and DBE ImplementationFriday, August 9, 2013Randelle RiptonDBE Technical Advisor

  2. State DOTs & DBE Implementation This session will address the following: What does it mean to foster small business participation? Oversight & Reporting Requirements for States and their subrecipients Open Question & Answers

  3. Fostering Small Business Participation • What does your small business element include? • Race-neutral set-asides for prime contracts ? • Bid specifications requiring the creation of appropriately sized subcontracts? • alternative acquisition strategies supporting the creation of joint ventures?

  4. Fostering Small Business Participation • 48 of the 52 States and Territories • Have Approved Small Business Elements • FTA, FHWA & FAA issued joint approvals of the §26.39 submissions

  5. Unbundling • Consider “unbundling” large projects into smaller pieces DBEs and SBEs can reasonably perform. • Low Bid? • price preference for small businesses Photo credit: www.businessmodelstudios.com

  6. Strategies Require prime bidders to identify subcontracts within a large contract

  7. Small Business Set-Aside? • Establish a small business set-asidefor prime contracts • Must be absent social disadvantage! • No DBE contract goals within here. Photo Credit: Microsoft Online Stock Photos

  8. Prime specifies subcontracts Have the prime provide subcontracting opportunities of a size that small businesses can perform

  9. How do you know if you’re successful? • How much of your business is done with small businesses? • Has your DBE participation improved?

  10. Capacity Building? * Success Runs in Our Race: The Complete Guide to Effective Networking in the Black Community by George C. Fraser • Networking and relationship-building is critical! • Professional success is about 85 percent “who” you know and 15 percent “what” you know.* • Successful people spend over half their time building relationships.*

  11. Questions?

  12. Oversight of Subrecipients

  13. Understanding the $250k threshold • FTA recipients receiving planning, capital and/or operating assistance who will award prime contracts (excluding transit vehicle purchases) exceeding $250,000 in FTA funds in a Federal fiscal year;

  14. Who’s responsible • Direct recipients responsible for subrecipients • Subs report through direct recipients Photo credit: Draw Street hierarchy www.bfoit.org

  15. Grant & Contract Assurance • (a) Each financial assistance agreement you sign with a DOT operating administration (or a primary recipient) must include the following assurance:

  16. Goal Setting • Overall goal based on the work that you and your subrecipients will undertake • This included a race conscious & race neutral split • What are your subrecipients doing? • Many believe that the being required to “do DBE” means

  17. Monitoring • must include a monitoring and enforcement mechanism • work committed to DBEs must be performed by the DBEs • written certification that you have reviewed contracting records and monitored work sites

  18. Reporting • mechanism must provide for a running tally of actual DBE attainments ( e.g., payments actually made to DBE firms), including a means of comparing these attainments to commitments. • More than just the Uniform Report

  19. Accountability if you fail to implement your program in good faith, you are in noncompliance with this part. • §26.47

  20. Questions?

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